M&A | Korean telecom group’s Canadian entry bodes well for local technology-sector expansion

by Chuck Chiang, Business in Vancouver

The recent acquisition of a Vancouver-area tech company by a South Korean multinational via compulsory means – the first such case in Canada – could signal the start of a bigger spike in cross-investment between B.C. and its fourth-largest trading partner.

That’s the observation of industry officials after Seoul-based Nuri Telecom announced earlier this month that it had acquired more than 90% of the shares in Richmond-based Apivio Systems Inc., a company that designs and produces voice-over-Internet protocol (VoIP) communication technology.

What has caught the eyes of observers is the manner of acquisition, and the source. South Korean companies have not been known to be major merger-acquisition players in the global market, and a Korean company’s decision to take over a Canadian firm might signal Seoul’s increased interest in B.C., especially in sectors other than the usual areas of trade between Canada and South Korea.